Dogecoin (DOGE) Traders Eye $0.50 Milestone After 95% Selling Pressure Decline

Dogecoin May Rally as Selling Pressure Decreases

Several on-chain indicators suggest that Dogecoin (DOGE) may rally to $0.50.

Dogecoin's Surge and Correction

DOGE recently reached a three-year high of $0.44 after Elon Musk's confirmation of his role in the Department of Government Efficiency. However, traders began taking profits, leading to a 15% pullback.

Reduced Selling Pressure

On-chain data shows a significant reduction in selling pressure this week. The Age Consumed metric, which measures the movement of long-held tokens, has declined by 95%. This indicates that fewer long-term holders are selling, potentially setting the stage for a price increase.

Technical Analysis

The Volume-Weighted Average Price (VWAP) at $0.395 suggests bullish momentum. The current market price of $0.399 is above the VWAP, indicating increased short-term demand.

The Donchian Channel indicator shows initial resistance at $0.44, which could lead to a continuation of the uptrend and a potential next milestone of $0.50. A breach below the midline of $0.29 could indicate a correction, but the bullish narrative remains intact.

Conclusion

Reduced selling pressure and promising technical indicators support the potential for Dogecoin to rally to $0.50.